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Massachusetts Paycheck Calculator

ma state tax rate

Earlier this year, incumbent Governor Charlie Baker announced that the Commonwealth generated so much tax revenue in its 2021 fiscal year that it triggered Chapter 62F, a little-known statute that has only been invoked once before . Chapter 62F provides that Massachusetts must issue tax refunds to taxpayers if it generates tax revenue above a certain threshold.



Note that while the statute provides for a 5% rate, an uncodified surtax adds .7% to that rate. An overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or you may request that it be refunded to you. An overpayment may also be offset or intercepted by the Department of Revenue and applied to ma income tax another liability. However, often an overpayment is refunded directly to you. Once the extension is granted, the 6-month extension starts at the filing due date of the original return. You can file your return anytime during the extension period. An extension to file a return doesn't extend the due date for paying any tax due.


How Your Massachusetts Paycheck Works


Form 63D-ELT must be filed on or before the due date of the PTE’s tax return, accounting for valid extensions. A "no" vote opposedamending the state constitution to create an additional tax of 4% for income over $1 million, thereby maintaining the existing flat-rate income tax of 5% with revenue dedicated to the state's general fund. Efforts to target wealthy residents with a progressive tax have failed in the past due to procedural infirmities or lack of widespread support.


  • For tax year 2022, Massachusetts was one of nine states implementing a flat income tax rate.
  • Five ballot measures related to education funding were certified for the 2022 ballot in five states.
  • An overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or you may request that it be refunded to you.
  • Disputes and litigation over the issue often followed.

Additionally, one or more employees telecommuting in Massachusetts due to the pandemic should not create a sales and use tax collection obligation or corporate apportionment adjustment. The PTE Excise tax is not mandatory, and the related provisions only apply to a PTE if they elect to be subject to the excise. If you make more than $1 million a year in Massachusetts, you may soon be subject to a "millionaire tax" approved by voters this week through a ballot initiative. Philip S. Olsen is a tax attorney at the Boston law firm of Davis Malm, where he focuses on state and local tax consulting and litigation. He has over 25 years of experience litigating and resolving major tax controversies before courts and administrative boards.


Your 2021 Federal Income Tax Comparison


It does not provide for reimbursement of any taxes, penalties, or interest imposed by taxing authorities and does not include legal representation. Additional terms and restrictions apply; See Guarantees for complete details. The Bay State is often called "Taxachusetts" – and there are some good reasons why it got that nickname.



Estates valued at more than $1 million may be subject to a Massachusetts estate tax. There is an unlimited marital deduction for property left to a surviving spouse and an unlimited charitable deduction for property left to a qualified charity. Some Massachusetts cities and towns also offer property tax "work-off" abatement programs, which allow seniors to do volunteer work for their local governments in exchange for a reduction of up to $1,500 on their property taxes.


Massachusetts Tax Rates, Collections, and Burdens


When you pay more taxes (i.e., withholding taxes or estimated taxes) than the amount of taxes determined to be due an overpayment may be generated on your account. An overpayment may also be generated if you are entitled to a refundable credit that exceeds the amount of tax due. Additionally, when you file an amended return or an abatement application to reduce the amount of tax due, and you previously paid more than what is now shown as due, an overpayment may be generated. You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe.


  • With Fair Share in place, Massachusetts filers would pay the 4 percent surtax only on the portion of their income above $1 million.
  • Formulas, Ballotpedia scored the readability of the ballot title and summary for this measure.
  • There are no guarantees that working with an adviser will yield positive returns.
  • On the plus side, sales taxes in Massachusetts are on the low end.
  • Massachusetts provides a wide array of credits including an earned income tax credit, a circuit breaker credit and a solar, wind and energy tax credit.

Because it’s a cloud-based tool, rate updates are pushed to you automatically, based on the latest jurisdiction rules and regulations. Sale, rental or use of tangible personal property, including cigarettes, telecommunications services and certain fuel.




Author Bio

Jitendra Yadav

As a senior team lead, Mr. Jitendra Yadav is well versed in all stages of the development cycle for dynamic web projects along with front-end and back-end development in-depth knowledge. He has been working with PHP, Angular CLI, and React JS languages for more than 13 years.

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